Islamabad May 6 2022: Pakistan fiscal deficit amounts to PKR 3,078 billion during the period from July 2022 to March 2023 as interest payments increases to PKR 3,582 billion compared with deficit of PKR 2,565 billion of same period last year, according to Ministry of Finance.
In comparison to Gross Domestic Product (GDP) of the country fiscal deficit decreased to 3.7 percent when compared with 3.8 percent in the same period last year. Encouragingly, primary balance of the country is positive 0.6 percent of GDP which is inline with IMF targets however, last year this number is negative 0.7 percent of GDP.
County collected total revenue of PKR 6,938 billion which is 18.1 percent higher when compared with the same period last year revenue of PKR 5,874 billion while expenditures increased by 18.6 percent to PKR 10,016 billion compared with PKR 8,439 billion last year.
Federal revenue collection amounts to PKR 5,155 billion while collection from provinces was PKR 461 billion in 9M of Fiscal year 2023, which runs from July to June, compared with PKR 4,383 billion and PKR 438 billion respectively
Tax to GDP ratio in 9M of Fiscal year 2023 was 6.7 percent compare with 7.2 percent of 9M of Fiscal year 2022 as collection from indirect taxes increased by just 1.4 percent.
Direct tax amounts to PKR 2,308 billion compared with PKR 1,578 billion, indirect taxes PKR 2,846 billion compared with PKR 2,805 billion. In indirect taxes customs generates revenue of PKR 701 billion which is lower to last year collection of PKR 714 billion in custom tax. Sales tax collection increased to PKR 1,901 billion compared with PKR 1,866 billion.
Collection from Petroleum Levy in 9M of Fiscal year 2023 amounted to PKR 362 billion compared with PKR 125 billion during the same period last year.
During the 9M of fiscal year 2023, country paid PKR 3,582 billion or 42.5 percent of the total income in the payment of interest of debt.
Country expenditure increased to PKR 10,305 billion when compared with PKR 8,429 billion last year mainly because of higher markup payments. Markup payments amounted to PKR 3,582 billion compared with PKR 2,118 billion last year while Defense spending increased to PKR 1,000 billion compared with PKR 882 billion in the same period year ago.
Pension liability of the country swell to PKR 486 billion in a period from July 2022 to March 2023 when compared with PKR 395 billion in the same period last year.
Government give PKR 526 billion in subsidies to the general public during 9M Fiscal year 2023 when compared with subsidies of PKR 575 billion in 9M Fiscal year 2022.
